Automotive Battery Management System Market is expected to reach US$ 161.84 Million by 2028

The automotive battery management system market is expected to reach US$ 161.84 million by 2028; registering at a CAGR of 17.6% from 2022 to 2028, according to the new research study conducted by The Insight Partners

Projected Rise in Demand for Electric Trucks and Buses to Provide Growth Opportunities for Automotive Battery Management System Market During 2022–2028

Transportation, especially road transport involving heavy-duty vehicles such as trucks and buses, is a major contributor to air pollution worldwide. Governments of major countries, including the US, the UK, Germany, Japan, and China, are taking initiatives to accelerate the adoption of electric buses and trucks. Further, electric trucks and buses exhibit higher efficiencies than ICE vehicles. Ongoing technological developments in electric trucks hold the potential would further support the battery management system market growth in the coming years. In January 2022, Pininfarina, an Italy-based design company owned by Mahindra, developed an electric semitruck with a self-drive system, in collaboration with Deppway, which is a subsidiary of Baidu. Further, in June 2022, Scania, a Swedish Company, introduced the next level of battery-electric trucks (BEV) in its R and S series. The continuation of the production of heavy-duty EVs would depend on their performance in terms of fuel efficiency, energy consumption (and costs), and emissions. Moreover, changes in the costs of batteries and alternative fuels would influence their demand and production. With the rapidly evolving EV landscape, improving battery performance, and favorable regulatory environment, the demand for electric buses, trucks, and other heavy-duty EVs is anticipated to grow in the coming years, thereby providing opportunities for Automotive Battery Management System Market growth during the forecast period.

Automotive Battery Management System Market — by Region, 2022

Source: The Insight Partners Analysis

The benefits of electrifying the buses have been lately realized by the end-users and the manufacturers. Several pilot projects are ongoing to deploy electric buses on school duty. As per the WRI Electric School Bus initiative report, as of March 2021, more than 12,000 committed electric school buses have been tracked. There are more than 10,000 additional electric school buses since the release of WRI’s January 2022 dataset. Also, in August 2022, Highland Electric Fleets coordinated a vehicle-to-grid (V2G) program with technology partners Proterra, Thomas Built Buses, Rhombus, and Synop with electric school buses. Thus, the increasing demand for electric school buses is propelling the Automotive Battery Management System Market growth.

Most of the world’s largest automotive OEMs have established manufacturing plants in North America. These plants manufacture passenger cars, trucks, buses, and other off-highway vehicles. The OEMs have undertaken various electrification initiatives. For instance, in July 2021, Stellantis announced its plans to invest around US$ 35.5 billion in vehicle electrification and new software/technologies by 2025. Furthermore, Stellantis joined automakers such as General Motors, Volkswagen, and Ford Motor in announcing investments of tens of billions of dollars in EVs. California, one of the largest automotive manufacturing hubs in the world, started providing incentives and mandates to the automotive OEMs for zero-emission vehicles. For instance, in August 2022, the California Air Resources Board approved the trailblazing Advanced Clean Cars II regulation to accelerate 100% new zero-emission vehicle sales by 2035. Thus, such initiatives are strengthening the demand for EVs, which is bolstering the Automotive Battery Management System Market share.

The automotive battery management system market share is segmented on the basis of vehicle type. By vehicle type, the market is segmented into bus, trucks, and off-highway vehicle.

A few key players operating in the automotive battery management system market are Continental AG; Dana Limited; GENTHERM; Hanon Systems; Mahle GmbH; NXP Semiconductors; Renesas Electronics Corporation; Robert Bosch GmbH; Valeo; and Marelli Holdings Co., Ltd.

Although the global Automotive Battery Management System Market size plummeted initially in 2020 due to the adverse impact of the COVID-19 pandemic and the related regulations, it achieved a strong recovery from the pandemic and is expected to grow in the coming years, owing to the rise in demand for battery management systems across the globe. With ease in restrictions and the reopening of business units in 2021, the auto industry has shown tremendous resilience. The onset of the COVID-19 pandemic influenced consumers’ perceptions of their vehicle needs. The demand for EVs is increasing rapidly. As per the Statista report, the interest in EVs increased by 56% in North America, 46% in Asia, and 29% in Europe. Supportive government regulations for banning ICE vehicles are further accelerating the EV sales, which is further aiding the Automotive Battery Management System Market size. For instance, in October 2022, New York State revealed the plan to increase the sale of zero-emission vehicles till 2035. Thus, such initiatives in the post-pandemic period are anticipated to drive the demand for Automotive Battery Management System Market during the forecast period.

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